As deferred maintenance at higher education institutions mounts, the growing backlog of needed capital investment presents a “hidden liability” for the sector, according to a Moody’s Ratings report this month. Collectively, the capital needs for facilities amount to between $750 billion and $950 billion over the next decade for colleges the agency rates, according to Moody’s. With fewer financial options, many colleges will resort to taking on new debt to finance investments, analysts said. Moody’s analysts expect infrastructure spending to pick up as colleges take on projects put off during the pandemic. But “few have the necessary resources and credit strength to sustain the higher amounts needed to tackle the full extent of their infrastructure needs,” they said.
